SCP, AxelaCare deal sets path to growth
CHICAGO – SCP Specialty Infusion wasn’t looking for a buyer, but when the team at AxelaCare Health Solutions approached the company, the potential for growth was clear.
“With their dynamic growth and our footprint we thought that 1+1=3,” said Justin Ishbia, founder and managing partner of SCP’s parent company Shore Capital Partners.
SCP Specialty Infusion launched in 2010 when Shore Capital Partners acquired Sirona Infusion as a platform. It now covers seven western states. Lenexa, Kan.-based AxelaCare mainly has branches in the Midwest and has plans to expand into New England and other states in 2014, according to a press release. Combined, the two companies were expected to exceed $200 million in sales by the end of 2013.
There were a lot of natural synergies between the two companies, said Ishbia.
“I believe they had a lot of products and patients that they couldn’t take care of in certain states where we had licensure and pharmacies,” said Ishbia. “And they are strong in the IVIg market, and that’s an area we had not moved into much.”
Growth in the home infusion market remains strong (see related story, above) and that’s not likely to change, because the therapy is a “win-win” all around, he says.
“About 98% of our patients were in hospital beds before they became our patient,” said Ishbia. “People prefer to be home. The payer who is paying X amount of dollars to the hospitals or providers prefers the patient to be in the home setting.”
Terms of the deal were not disclosed.